Communication technologies and services company Ericsson has submitted a binding offer to acquire the Broadcast Services Division of Technicolor, a technology firm in the media and entertainment sector.
The acquisition will allow Ericsson to increase its current broadcast operations in terms of channels managed and households reached.
It also will bring approximately 900 skilled professionals and playout operations located in France, UK and the Netherlands serving several leading broadcasters.
The acquisition broadnes Ericsson’s managed services for media broadcasters offering .Ericsson applies the managed services business model established in telecom operations, to improve efficiency and increase revenues for the broadcasters.
Technicolor CEO Frederic Rose said the transaction is consistent with Technicolor’s strategy to focus on media monetisation applications, new growth businesses, and strengthen its balance sheet.
"For Ericsson, managed services are a core business and after completion of this divesture, the Broadcast Services activity will benefit from the company’s know-how and global scale necessary to remain a key player in the worldwide Broadcast industry," said Rose.
